1. What is social investing?
Historically, the notion of discussing personal finances with anyone other than an investment professional was considered taboo. However, with only 28% of millennials trusting banks and financial institutions, according to the World Economic Forum, younger generations are flocking to social media apps and forums to discuss investment and trade ideas.
As the wealth gap has continued to grow wider this century, everyday investors have begun to look for alternative, non-traditional channels for advice and guidance.
1. Digital availability
A new generation of investors now have access to financial markets via digital brokerage apps – which aim to make investing more fun and simpler. As of 2018, 69% of adults have access to financial markets globally, a whopping 51% increase since 2011.
2. No-fee trading
As a result of intense competition and new market entrants, trading fees at brokerage firms have been all but eliminated.
3. Social media access
Internet forums and social media apps have given the collective masses the ability to communicate at a scale never-before seen. Today, over 4.1 billion people use social media globally.